A new report by the Global Coalition of Fresh Produce is warning about the rising cost and declining supply of fruit and vegetables, which threatens economic stability, food security, and human health.."Governments should work urgently with all operators in the supply chain to mitigate the serious threats of economic instability and food insecurity," said the report. Unless effective measures are implemented urgently, the current challenges facing the sector will have long-lasting impacts on economies — and consumers — the world over, including bankruptcies, legal disputes, food inflation, food shortages and more.".According to the report released last week, the COVID-19 pandemic created "unprecedented" economic and logistical challenges for fruit and vegetable supply chains around the world. While the sector made great progress in dealing with the associated challenges, it now faces substantial increases in costs, inefficiencies and delays in transportation, and labour shortages..On the logistics front, the price of shipping containers increased by up to 400%, while the costs of truck transportation rose by at least 20%. Ports across North America are also congested, with a record number of ships waiting to dock, the majority off the East and Gulf Coast ports, in July 2022.."There are no signs the current difficulties in marine shipping will abate any time soon," the report says. "Indeed, higher costs and port congestion are expected to continue at current levels until 2023, while the ongoing space crunch out of both Asia and Europe is accelerating the pace of contract negotiations for container space.".Every stage of the production of produce — including planting, harvesting, preparing, and shipping — is also facing severe labour shortages. A 2021 industry survey in Canada found 31% of respondents stated their productivity was impacted, 20% saw sales and profitability decrease, and 17% had limited access to products and inventory..As consumers spend more money on the increasing cost of heating, electricity and transportation, they are seeking out cheaper, more calorie-dense foods to save costs. The report claimed the shift away from fresh product will worsen health outcomes over the long term, while also shrinking the export markets for fruits and vegetables in developing countries. ."This in turn will lead to a cut in export revenues, negatively affect investment and possibly cause a slump in overall economic growth, pushing people into poverty and threatening food security," the report says. "In addition, there is a risk exporters in developing countries will start looking for easier market outlets with lower social and environmental standards, which would have long-term negative effects on the economies, societies and environment of these countries.".The report also warns the compounding challenges of rising costs, logistic inefficiencies and labour shortages will reduce the quantity of fresh product and push prices even higher. Many producers could be forced out of businesses, while those that remain will be unable to maintain production volumes as they struggle to find fertilizers, pesticides and herbicides.."Delays and disruptions in shipping, as well as any failures in temperature control during storage and transportation resulting from excessive energy prices, impact the freshness of our highly perishable products, resulting in higher levels of food loss and waste. Such an outcome — which has a greater impact on low-income countries — is socially and environmentally unsustainable.To remedy the situation, policy-makers must assist food growers with the production, distribution and promotion of their goods. The report recommends governments provide targeted financial supports for the produce sector, work towards the development of more safe and good-paying jobs in the production and transportation sector, and cut red tape for growers and other operators..Governments should also promote the development of innovative and sustainable ways of moving goods inland, while also creating priority lanes to ensure quick offloading and transit in seaports and other arrival points.."We urge policymakers to investigate the causes of inefficiencies at seaports, and implement measures to minimize bottlenecks and improve operational practices to ensure the seamless movement of fresh produce," the report says.."The Global Coalition of Fresh Produce is ready to engage with national and international policymakers to jointly develop strategies to create resilient and secure global value chains for fruits and vegetables that reliably deliver safe and affordable products to consumers worldwide.".According to Canada’s Food Price Report released last December, the average Canadian family can expect to pay $1,065 more for groceries in 2023. An average family of four will spend up to $16,288.41 per year on food, an increase of up to $1,065.60 from what was observed in 2022. .READ MORE: Expect to pay $1,000 more for groceries in 2023, Canada's Food Price Report claims.“To say it’s been a challenging year for Canadians at the grocery store would be an understatement,” says Dr. Sylvain Charlebois, project lead and director of the Agri-Food Analytics Lab at Dalhousie University.
A new report by the Global Coalition of Fresh Produce is warning about the rising cost and declining supply of fruit and vegetables, which threatens economic stability, food security, and human health.."Governments should work urgently with all operators in the supply chain to mitigate the serious threats of economic instability and food insecurity," said the report. Unless effective measures are implemented urgently, the current challenges facing the sector will have long-lasting impacts on economies — and consumers — the world over, including bankruptcies, legal disputes, food inflation, food shortages and more.".According to the report released last week, the COVID-19 pandemic created "unprecedented" economic and logistical challenges for fruit and vegetable supply chains around the world. While the sector made great progress in dealing with the associated challenges, it now faces substantial increases in costs, inefficiencies and delays in transportation, and labour shortages..On the logistics front, the price of shipping containers increased by up to 400%, while the costs of truck transportation rose by at least 20%. Ports across North America are also congested, with a record number of ships waiting to dock, the majority off the East and Gulf Coast ports, in July 2022.."There are no signs the current difficulties in marine shipping will abate any time soon," the report says. "Indeed, higher costs and port congestion are expected to continue at current levels until 2023, while the ongoing space crunch out of both Asia and Europe is accelerating the pace of contract negotiations for container space.".Every stage of the production of produce — including planting, harvesting, preparing, and shipping — is also facing severe labour shortages. A 2021 industry survey in Canada found 31% of respondents stated their productivity was impacted, 20% saw sales and profitability decrease, and 17% had limited access to products and inventory..As consumers spend more money on the increasing cost of heating, electricity and transportation, they are seeking out cheaper, more calorie-dense foods to save costs. The report claimed the shift away from fresh product will worsen health outcomes over the long term, while also shrinking the export markets for fruits and vegetables in developing countries. ."This in turn will lead to a cut in export revenues, negatively affect investment and possibly cause a slump in overall economic growth, pushing people into poverty and threatening food security," the report says. "In addition, there is a risk exporters in developing countries will start looking for easier market outlets with lower social and environmental standards, which would have long-term negative effects on the economies, societies and environment of these countries.".The report also warns the compounding challenges of rising costs, logistic inefficiencies and labour shortages will reduce the quantity of fresh product and push prices even higher. Many producers could be forced out of businesses, while those that remain will be unable to maintain production volumes as they struggle to find fertilizers, pesticides and herbicides.."Delays and disruptions in shipping, as well as any failures in temperature control during storage and transportation resulting from excessive energy prices, impact the freshness of our highly perishable products, resulting in higher levels of food loss and waste. Such an outcome — which has a greater impact on low-income countries — is socially and environmentally unsustainable.To remedy the situation, policy-makers must assist food growers with the production, distribution and promotion of their goods. The report recommends governments provide targeted financial supports for the produce sector, work towards the development of more safe and good-paying jobs in the production and transportation sector, and cut red tape for growers and other operators..Governments should also promote the development of innovative and sustainable ways of moving goods inland, while also creating priority lanes to ensure quick offloading and transit in seaports and other arrival points.."We urge policymakers to investigate the causes of inefficiencies at seaports, and implement measures to minimize bottlenecks and improve operational practices to ensure the seamless movement of fresh produce," the report says.."The Global Coalition of Fresh Produce is ready to engage with national and international policymakers to jointly develop strategies to create resilient and secure global value chains for fruits and vegetables that reliably deliver safe and affordable products to consumers worldwide.".According to Canada’s Food Price Report released last December, the average Canadian family can expect to pay $1,065 more for groceries in 2023. An average family of four will spend up to $16,288.41 per year on food, an increase of up to $1,065.60 from what was observed in 2022. .READ MORE: Expect to pay $1,000 more for groceries in 2023, Canada's Food Price Report claims.“To say it’s been a challenging year for Canadians at the grocery store would be an understatement,” says Dr. Sylvain Charlebois, project lead and director of the Agri-Food Analytics Lab at Dalhousie University.
